Member Info for Wednesday

Not really sure why you feel the need to comment Savage, by all means outline why you think Capita is generally a bad investment and back that up where possible.

Insulting someone else for investing, whilst telling the situation they are facing, imo says a lot more about you, than the words you type.

Slightly disagree with that Krusty, whilst the p/e is a little high for a mature/low growth company, so you would want growth - it is certainly not going to grow at a rate of knots either. 4% divi is nice compensation in the meantime and paid as this is a very cash generative business. There is also a chance they automate something that is a massive gamechanger.

I did contact IR, no response, but I like MEGP nevertheless, I think there may be a move to greater automation because of the high cost of employment and taxation (think launderettes closing, replaced by wash me). A lot of people (especially younger), don't want other human contact either - kids not wanting phone places, again which can benefit.

The mega-pension pot is just economies of scale and in line with other countries such as Canada. If implemented correctly can boost growth for both the country and the returns of the pot.

Tbh, think JO has a point here HHH81. Presume your reference is to JO selling because of a specific Capita diversity award and then to refer to 'Klan' - note the K and not the c - which has obvious connotations.

I'm not a fan of JO either...

Thanks Krusty, I'll have a look out for that, albeit trading updates typically tend to be backwards looking - a pulse take at a point in time.

May e-mail investor relations. :)

Really like the story and financials of ME Group, however have a bit of a question about future expansion plans. Have looked at results and it only really mentions roll-out of new WASH machines (circa 90 per week) and the refresh of the Photo booths. Touches upon new R&D, but no real detail.

Does anyone have anything firmer on plans for 2025 (and beyond)?

Thanks

I am outraged by Capita having 52% of women on track for senior roles, I am now going to sell the remainder of (didn't mention it before as it didn't suit my agenda) shares in Capita, which I bought at a conveniently superb market low price for a convenient recent high (how do I do it?).

I will buy some other shares with this money days before I sell the Capita shares too - obviously these will be at a market low as well.

wibble.

No seriously, good luck with your investment elsewhere. Hope someone revisits Pru performance against Capita over 3 and 6 months (perhaps you will).

Peace and love x

Hi Broomtree, not sure if both you and James Oxford have sold out on the same basis (or if you are the same person), either way my comment was more aimed at James in any case - who of course is correct that he is, as we all are, entitled to purchase / sell our shares whenever we want (indeed the market demands that!).

However, as I recall he came out with a compelling argument initially why he was buying the shares, fine if you disagree, but that was his opinion. Then a few weeks later he sells, citing the most ridiculous reasoning*. This is just disingenuous imo and matches his earlier anti-Capita rhetoric.

Either way all the best in your future investments James.

*i.e. if you thought Capita was going to 10-bag (haha), would you sell out because of some awards?

Sure that in one of the presentations (not recently), it was said that DEI was part of the scorecard used by government to assess bids.

I too have decided to sell out as Adolfo sounds too much like Adolf - shocking. Am going to take my £7.50 and place it into Legal and Gen, because I like their logo.

Wibble.

Apologies NOFEAR, yes it was SHAREHEAD.

In which case, where are you SHAREHEAD!?

NOFEAR originally thought GOCPI he was Jon Lewis! However in fairness to him, he did call out that every time he appeared there seemed to be some good news following, almost like he knew (and seemed right).

Sure it will have just been a coincidence, but if not, where are you GOCPI! ;)

Agreed, Simplies.

However we have been promised a turnaround for soooo long and it has yet to arrive in terms of positive FCF - JL mentioned this is the point of inflection, still not arrived. JL also got 700m from Rights Issue, made a smaller company through sales and left with his successor having to make massive cuts and making the company even smaller.

My point is we have heard it before, I am broadly still positive, but I want to see them delivering sustainable positive FCF, everything else should follow from then (in terms of divi / buybacks / share price rises).

Listened in with interest, thanks Alex (very professional as always), just thought I would mention this as not seen it elsewhere on here.

AH is asked at one point will Capita be announcing new contracts (I understood it to be soon-ish - over next 6 months), he hesitates and then says yes (in a manner that seemed like, not sure I should mention).

Of course I could have interpreted it entirely incorrectly.

First thing I have ever agreed with you on Savage (the Boris bit and him being a disgrace).

Not actually sure why you come on here tho, you actively don't want to be invested and you are ridiculed by other members for your views on Capita which are abstract. Either way, each to their own. :)

Thanks for coming back Okey.

So approx (700m - £55m Capita One) = £650m, now I am sure some of this is rubbish, but if we worked on a 10X sale multiple based upon 5% weighted profit across the business (this is a complete guess - but Capita One was 20% profit margins - but presume jewel in crown) around circa 300m worth of value.

Do accept a lot of guess work in the above calc (there may be negative value in the managed for business portfolio too), but on my calcs, that is broadly equal to the MCAP of the whole business.

Adjusting for the disposal of Capita One, on a pro-forma pre-IFRS 16 basis as at 30 June 2024, Capita was in a net cash position.

If they can prove solid FCF, this is due a massive re-rate imo.

I also presume if they are able they will sell some of the other 'managed for value' companies to focus on the key areas of focus. Has anyone looked at the potential value (or even turnover / profit) of these companies (how much more is potentially hidden on the balance sheet)?

Https://www.yorkshirepost.co.uk/business/jobs-hope-as-capita-acquires-ventura-for-ps65m-1926805

Link to the original story from 2011. Tbh NOFEAR, the bit you copied looked legit and would have been a massive statement of intent.

Just want to thank Savage Keyboard for taking time out of his day to comment on a share he is not invested in, stating an opinion that carries no degree of evidence and finding repeated availability to do so.

You sir, are a king amongst men! :)